California's revenues are plunging amid recession, rising unemployment and the prolonged housing crisis, and this time around the state is unable to borrow its way out of its immediate financial trouble by issuing debt at low cost because of its $24 BILLION budget gap.
Our Golden State will run out of cash within weeks if it does not balance its books, leaving it little option but to postpone a variety of payments, according to State Controller John Chiang, who estimated last week that California was "less than 50 days away from a meltdown of state government."
As we've said previously, lawmakers are finally coming face to face with the financial reckoning that they have put off time and again through band-aid budgets and budgetary shell games.
And as Democratic Legislative Leadership begins to cobble together a budget held together with HIGHER TAXES, it is becoming increasinlgly clear why they are not willing to cut the excessive spending:
Our Golden State will run out of cash within weeks if it does not balance its books, leaving it little option but to postpone a variety of payments, according to State Controller John Chiang, who estimated last week that California was "less than 50 days away from a meltdown of state government."
As we've said previously, lawmakers are finally coming face to face with the financial reckoning that they have put off time and again through band-aid budgets and budgetary shell games.
And as Democratic Legislative Leadership begins to cobble together a budget held together with HIGHER TAXES, it is becoming increasinlgly clear why they are not willing to cut the excessive spending:
Remember: California doesn't have a revenue problem, it has a spending problem. If, since 1990, state spending increases had been held to the inflation rate plus population growth, the state would have a $15 billion surplus instead of a $42 billion budget deficit.
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